Creating a Purchased Price Index as a Key Performance Indicator

Author(s):

Bendorf, CPSM, C.P.M., Robi

94th Annual International Conference Proceedings - 2009 - Charlotte, NC

Abstract

When cost reductions are difficult to obtain and prices increase, how can you show that supply management is still doing a great job? Developing and maintaining a purchased price index and comparing it to external indexes is an essential key performance indicator to demonstrate and communicate value-add within the supply chain.